Title
Lifting Ban on Licenses for Overseas Recruitment Agencies
Law
Executive Order No. 450
Decision Date
Mar 19, 1991
Corazon C. Aquino lifts the ban on new licenses for private employment agencies to recruit Filipino workers for overseas jobs, aiming to enhance the overseas employment program and respond to emerging market demands under strict regulation by the Department of Labor and Employment.

Questions (EXECUTIVE ORDER NO. 450)

To immediately lift the ban on new applications for licenses to operate private employment agencies engaged in the recruitment and placement of Filipino workers for overseas employment, subject to guidelines and regulations to be issued by the Secretary of Labor and Employment.

EO 450 is anchored on Article 25, which allows the continued participation of the private employment sector in recruitment and placement under guidelines issued by the Secretary of Labor and Employment.

Letter of Instruction (LOI) No. 1190, issued on January 20, 1982, which banned the issuance of licenses to operate private employment agencies for overseas recruitment.

To stop the proliferation of recruitment agencies and prevent cut-throat competition, and to protect workers from prohibited and exploitative practices by recruiters.

Because in 1982 there was an absence of an effective administrative machinery to address, supervise, and regulate the upsurge of placement agencies.

The integration of offices involved in the overseas employment program through the creation of the Philippine Overseas Employment Administration (POEA).

Developing and maintaining a roster of responsible and reputable licensed agencies, under strict supervision and regulation by the Department of Labor and Employment.

EO 450 lifts the ban on new applications for licenses; it does not necessarily repeal LOI 1190 in general terms, but it removes the specific prohibition on issuing new licenses.

Licensing and agency operations must be under strict supervision and regulation, and subject to guidelines, rules, and regulations issued by the Secretary of Labor and Employment.

To take advantage of new markets and increased demand for Filipino manpower at competitive terms, and to aggressively channel the much-needed foreign exchange through licensed agencies.

Yes. It lifts the ban on new applications to allow entry of innovative and dynamic participants, but only subject to the required guidelines and regulatory framework.

It notes opening of new markets with increasing demand for Filipino manpower and encourages review and re-evaluation of licensing policies.

It was done in the City of Manila on March 19, 1991.

By allowing more agencies through lifted licensing restrictions while requiring strict supervision and regulation and by maintaining a roster of reputable licensed agencies to prevent exploitative practices.


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